Is Donald Trump on an Relentless Quest to Corner Iran? | Inside Story

Oil production, prices and politics require a delicate balance. Donald Trump is urging oil-producing countries except Iran to boost output. He hopes that will keep prices low - and motorists happy with cheaper fuel - as he tries to force the Iranians out of the market.

Trump's pressuring allies to stop buying Iranian oil as a tactic to make Iranian leaders negotiate a new nuclear deal, after he pulled out of the 2015 agreement two months ago. Iran says it will find ways to export its oil, despite what he does.

So how much support can Trump garner for his economic assault against Iran?

Presenter: Elizabeth Puranam | Guests: Mohammad Marandi - University of Tehran; Scott Lucas - University of Birmingham; Anjli Raval - Oil & Gas Correspondent, Financial Times

Counting the Cost: Libya: Heading towards Bankruptcy?

As oil output continues to slide since the fall of the Gaddafi regime, we look at the impact on the country's economy.

West Seeks Saudi Arabia's Help on Iran Oil Sanctions

LOS ANGELES TIMES: The U.S. and its allies hope the kingdom will boost output to prevent oil prices from climbing as they pressure Iran on its nuclear program.

Reporting from Washington — In a new effort to persuadeIran to halt its nuclear program, the Obama administration and its European allies are asking Saudi Arabia to help them squeeze Iran's vital oil sector without driving up world energy prices and damaging the global economy.

Officials in the United States, France, Britain and other countries have been lobbying the Saudis in recent weeks to produce billions more barrels of oil to provide an alternative source for buyers of Iranian oil.

The goal is to keep global prices stable while cutting Iran's ability to sell oil on world markets. The move would come as Western governments add more sanctions to dissuade international customers from buying from Iran, now the world's fourth-largest oil exporter.

A Western official said the Saudis have become "the great hope" for enabling the West to avoid an oil price increase while pressuring Iran to abandon its nuclear development program. U.S. officials say Tehran is fast approaching the ability to build a nuclear weapon. Iran says it is enriching uranium to generate electricity in power plants. » | Paul Richter, Los Angeles | Tuesday, December 13, 2011

Oil Markets Brace for Saudi 'Rage' as Global Spare Capacity Wears Thin
THE DAILY TELEGRAPH: Those exhorting OPEC to boost output should be careful what they wish for. The cartel card can be played once only, and it risks exposing the fragility of the global energy system if the Gulf powers are seen struggling to deliver.

Goldman Sachs suspects that OPEC has been pumping far above its agreed quota since November and therefore cannot easily raise output much without cutting deep into global spare capacity.

Jeff Currie, the bank's oil guru, said Saudi output had quietly crept up by 700,000 barrels a day (bpd) even before the Libyan supply shock.

Assumptions that OPEC has added 1.9m bpd over the last two years are wishful thinking. These new fields have been "largely offset" by attrition in old fields.

"We believe that OPEC spare capacity has already dropped below 2m bpd. The question therefore arises how much spare capacity is left to absorb potential supply disruptions in other countries," he said.

If this picture is broadly correct, spare capacity is already close to the wafer-thin levels that led to wild price moves in mid-2008.

The flow of Libyan oil has so far fallen by 1m bpd. This may not sound much against global supply of 88m, but oil prices are determined by levels of spare capacity once supply tightens.

Beyond a certain point, the price spiral can kick in with explosive force until the economic damage crushes demand.

Libya's conflict has already cut spare capacity by a third. Hopes for a quick solution are fading as the country succumbs to civil war along ancient lines of tribal cleavage. A raft of new projects planned for the Sirte Basin by mid-decade will be mothballed. >>> Ambrose Evans-Pritchard, International Business Editor | Tuesday, March 08, 2011